Automotive Engineering Services Outsourcing Market Size, Share & Trends Report

Automotive Engineering Services Outsourcing Market Size, Share & Trends Analysis Report By Application, By Service (Designing, Prototyping), By Location (On-shore, Off-shore), And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-2-68038-635-6
  • Number of Pages: 300
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2021
  • Industry: Technology

Research Methodology

A three-pronged approach was followed for deducing the automotive engineering services outsourcing market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for automotive engineering services outsourcing market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of automotive engineering services outsourcing market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Automotive Engineering Services Outsourcing Market Categorization:

The automotive engineering services outsourcing market was categorized into four segments, namely application (Autonomous Driving/ADAS, Body & Chassis, Powertrain and After-Treatment, Infotainment & Connectivity), service (Designing, Prototyping, System Integration, Testing), location (On-shore, Off-shore), and regions (North America, Europe, Asia Pacific, South America, Middle East & Africa).

Segment Market Methodology:

The automotive engineering services outsourcing market was segmented into application, service, location, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The automotive engineering services outsourcing market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into ten countries, namely, the U.S.; Canada; Mexico; the UK.; France; Germany; China; India; Japan; and Brazil

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Automotive engineering services outsourcing market companies & financials:

The automotive engineering services outsourcing market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • Bertrandt: Bertrandt is an engineering specialist company that provides customized solutions throughout the entire product engineering process. It provides its engineering services to multiple sectors, including automotive, aerospace, machinery & plant engineering, electrical engineering, energy, and medical technology. Bertrandt provides devices and specific solutions tailored to the needs of customers located in around 53 countries across Europe, Asia, and the U.S. Their services for the aerospace and automotive industries include all process steps involved in the project phases of CAD, conceptual design, development, tool production, design modeling, production planning, and vehicle construction from the start of production and associated support.

  • EDAG Engineering GmbH: The company was founded in 1969 at Groß-Zimmern near Darmstadt, Germany. It was initially known as Konstruktionsbüro Horst Eckard. The company specializes in vehicle components, production facilities, and modules and offers engineering services to the automotive industry. EDAG Engineering GmbH's engineering services include product development, production, and innovations. Its assembly services also offer simultaneous engineering, digital planning tools, simulation, production control, equipment delivery, implementation, and plant engineering. EDAG Engineering GmbH has its headquarters in Fulda, Germany. The core competency of the company lies in lightweight vehicles and the body concept of electric vehicles. In 2012 and 2013, the company acquired Rucker Group and BFFT Group, which strengthened its position in the engineering services sector.

  • FEV GmbH: The company was established in 1978 and is headquartered in Aachen, Germany. The company develops and manufactures vehicle drive systems, energy technology, internal testing and instrumentation products, and combustion engines for the OEMs in the transportation industry. It provides a wide range of engineering services support in the analysis, designing, transmission development, powertrain, prototyping, calibration, vehicle integration, and homologation for advanced diesel, alternative-fueled, and internal combustion gasoline powertrains. The company specializes in designing engines for passenger cars, commercial vehicles, and ships and locomotives. FEV GmbH operates its technical centers in North America, Germany, Brazil, China, and India and has more than 40 subsidiaries worldwide. Since 2010, the company has a vast fleet of electric vehicles. Its recently concluded successful projects include passively cooled packages for pure electric vehicles and water-cooled high-performance plug-in hybrid batteries.

  • HORIBA, Ltd.: The company was founded in 1945 and is headquartered in Kyoto, Japan. It offers several systems and instruments for automotive and scientific R&D, in-vitro medical diagnostics, processes, environmental monitoring, QC measurement applications, semiconductor manufacturing, and metrology. HORIBA Automotive Test Systems GmbH specializes in the supply of engine test systems, brake test systems, driveline test systems, wind tunnel balances, and emissions test systems. The company provides complete turnkey capabilities to OEMs and suppliers and provides tools to the clients for in-house testing. HORIBA ATS works with manufacturers using turbine engines and internal combustion engines in critical industries such as automotive, heavy-duty on/ off-road, marine, locomotive, aerospace, and recreational and utility vehicles.

  • IAV GmbH: The company was incorporated in 1983 and is headquartered in Berlin, Germany. It provides engineering services to the automotive industry and caters to light vehicles, such as chassis, combustion engine, cockpit, E-Traction, hybrid, exterior, mobility, gaseous-fuel vehicle, interior, powertrain concept and integration, product life cycle, vehicle electronic, powertrain electronic, transmission, vehicle function, and vehicle safety services, and; commercial work machines and vehicles, including cabin, powertrain, driver assistance, functional architecture, transportation and logistics, and work and agricultural machines; energy supply aspects, and test and methods facilities. IAV serves automobile manufacturers and their system suppliers globally with subsidiaries in over 32 locations across 13 countries in North America, Europe, Asia Pacific, and South America. 

  • AKKA Technologies SE: The company is headquartered in France, and operates as a technology, cross-sector engineering, and consulting services provider. The company offers mechanical engineering, systems engineering, process engineering, industrialization & supply chain management support, certification, information systems, and consulting services. Besides, the company provides services to the aeronautics, automotive, energy, railway, life sciences, space, defense, telecom, services and information systems, oil and gas sectors. AKKA Technologies SE operates across 20 countries across Europe, Asia, the Americas, Africa, and the Middle East. The company has 21 centers of excellence worldwide to improve group collaborations and engage in in-house R&D to promote innovation and technology transfer. In 2011 and 2017, Akka Technologies acquired two of the prominent engineering service providers, Gigatronik and MBtech Group GmbH.

  • Altair Engineering, Inc.: The company was founded in 1985 and is headquartered in Michigan, U.S., and is a subsidiary of Altair Engineering, Inc., based in Boblingen, Germany. The company provides engineering software & cloud computing as well as product design & development services. It applies simulation technology to optimize and synthesize designs, decisions, and processes for its clients. The company operates in three business divisions: software, client engineering services, and others. Altair provides services, such as industrial design, product engineering, technical staffing, analytics solutions, and HyperWorks solutions to OEMs and suppliers spread across the automotive, aerospace, defense & government, and consumer product sectors. Altair Engineering, Inc. specializes in several services, including CAE simulation and optimization technology, product engineering and development, HPC and on-demand computing, industrial design and product strategy consulting, business and engineering analytics solutions, technical staffing services, and the Internet of Things.

  • The ALTEN Group: The company was incorporated in 1988 and is headquartered in Germany. The company is one of the leading providers of technology consulting and engineering services in Europe and was previously named IMP Engineering GmbH. The company currently operates as a wholly-owned subsidiary of ALTEN SA. The company is present at 25 locations in Germany and offers integrated IT security solutions. The company's superior services include electrical/electronic hardware/software-related services, mechanical design, production & process planning, and quality & project management (3P) for OEMs. The company specializes in providing engineering services to a broad range of industries, including automotive, power engineering, semiconductors, aerospace, medical technology, and the telecommunications industry.

  • The Automotive Systems and Projects (ASAP): The company provides services related to the entire product lifecycle of automobiles. The company’s key business areas include engineering, general, and technical services. They support their customers for specified products and market-related business areas. ASAP Engineering GmbH was founded in 2007 as an independent company at Weissach and is headquartered in Gaimersheim, Germany. The company operates as a subsidiary of MINE Beteiligungs GmbH and employs approximately 1,250 employees, spread across its eleven locations. The ASAP Group is a part of the umbrella company ASAP Holdings, which was established in 2010. In October 2018, ZF Friedrichshafen AG acquired 35% of shares of ASAP Holding GmbH.

  • AVL LIST GmbH is an Austria-based firm that provides consulting and independent research services to its clients. The company is a developer of internal combustion engine powertrain systems and electric powertrains, instrumentation, and test systems. It was formerly known as IBL, and in 1951 it changed its name to AVL LIST. The company’s products include vehicle testing and instruments and systems for powertrain applications. The company provides powertrain elements, such as controls and electronics, batteries, e-drives, engines, transmissions, and vehicle systems. AVL also offers simulation technologies and testing solutions and services. The company provides its solutions to the aviation, 2-wheeler, electrification, construction equipment, large engines, racing, tractors, passenger cars, and commercial on-road industries.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

Automotive Engineering Services Outsourcing Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Automotive Engineering Services Outsourcing Market Report Assumptions:

  • The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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